Dairying in Africa - Status and recent developments

O A Ndambi, T Hemme and U Latacz-Lohmann*

IFCNDairy Research Center at the Department of Agricultural
Economics, University of Kiel,Schauenburger Strasse 116, 24118 Kiel,
Germanyndambi.asaah@ifcndairy.org*Department of Agricultural Economics, University of Kiel, Germany

Summary

The quest for more knowledge on the African dairy sector is
increasing over the recent years. Dairying has been envisaged as a means to
improve on the nutritional status and income generation from poor African
families. This has led to the implementation of lots of developmental projects
in favour of dairying. Different trends have been noticed in dairy sectors of
different countries over the past years.

This review describes the present dairy situation in Africa and
looks at trends in the sector from 1990 to 2004. It gives a general overview of
dairying in Africa, its trends and policies which have impacts on its
development. Many open points have also arisen, which could serve as a starting
point for further studies on dairying and its drivers.

Introduction

Traditional systems have dominated milk production in Africa for
several years and still supply considerable amounts of milk today and also
account for above 90% of dairy ruminant population in Sub-saharan Africa
(Olaloku and Debre 1992). Indigenous groups like the Maasai, Borani, Fulani and
Tuareg have a strong historic dairy tradition. They share many customs and
regard milk as a product of harmony that is offered free to relatives, friends
and visitors (Bayé 2000, Sadou 2000, Suttie 2001). Due to population growth,
land shortage and increasing interest in production and consumption,
market-oriented dairy systems are now evolving, with the use of high performing
graded animals and/or higher inputs. Several international bodies (Heifer
Project International, Land O'Lakes, Send a Cow, etc) have developed strategies
to promote milk production in African countries. These bodies usually have two
main objectives: Improving on milk consumption especially by poor families
(nutrition improvement) and increasing on farm returns from dairy farming
(income generation and poverty alleviation). Therefore it is important to see
how dairying has evolved in Africa as a whole and in individual African
countries as well.

Dairy production systems in Africa

For a long time, dairy systems in Africa have been classified into
different groups, based mainly on farm inputs and outputs. A summary of these
systems is shown on Table 1:

Pastoral systems

Pastoral systems are migratory, transhumant or sedentary.
Sedentary farmers live in the same homes all year round while migratory and
transhumance farmers move.. One of the oldest pastoral systems is practiced by
the Maasai in the sparsely populated semi-arid range-lands of Kenya and
Tanzania. The Maasai migratory farmers who live in extended families of 10-15
people with herds averaging 100-170 cattle and as many sheep and goats also.
They produce and consume about 0.85 kg of milk per person per day; meanwhile, a
greater share of the income comes from sales of livestock. Only a few of them
grow crops while the majority purchases most of their foodstuff. In this system,
milk surplus is shared with neighbours or exchanged in barter, but is rarely
sold except by households living close (<5 km) to main roads and urban centres
where there is demand for fresh and fermented milk, and butter. The Borana
pastoral system is similar that of the Maasai. Here, the frequency and amounts
of dairy products traded depend on herd size and distance to the market. Milk
sales in this system is however of higher interest than is the case with the
Maasai (De Leeuw et al 1998).

According to Tonah (2002), dairy production by the Fulani in Ghana
is characterised by migratory pattern, which is changing over time. Similar to
the Maasai, Fulani have a uniqueness which stems from the fact that they are
culturally the least known to the indigenous population and share very few
practices with the host population. Fulani settlements are typically located at
the outskirts of the settlement and consist of several concentric huts arranged
to form a single housing unit. In a study on Fulani Agro-pastoralists in central
Nigeria, Waters-Bayer (1988) found that dairy production units had modal
household sizes of 7 - 13 persons with almost equal males and females and 45% of
members above 18 years.

Contrary to the situation of the Fulani in Ghana, milking by
Nigerian Fulani is only done once daily by boys and men and exceptionally by
women. The Fulani here have a more sedentary pattern of life. The modal herd
size is usually between 40 - 60 cattle with majority of families keeping sheep
and all keeping poultry. During dry periods, they graze their animals further
away from their homes as compared to the rainy seasons when sufficient pasture
can be got closer to their homes (within 5 - 6 Km). In the dry season,
arrangements are made with local farmers for stubble grazing and manuring.
During such periods, a woman or one of her children have to spend up to an hour
on the way to such farms, taking along cooked food for the herders and returning
with milk for the household (de Leeuw et al 1988 1998). In other cases, part or
all of the family moves with the herd and only return home when conditions are
favourable. Whenever part of the family remains home, a few cows with younger
calves are left behind, to supply milk to the household and to prevent the
fragile calves from dying during the stressful transhumance period.

Another pastoral system is that where herders are pastoralists who
act as managers of communal herds with cattle, which are entrusted to them by
local farmers who each own a few heads (de Leeuw et al 1998).

An improved system, the agro-pastoral system arises from the
pastoral system, whereby cattle owners also cultivate crops in order to
diversify production and reduce risks. The farmers here are sedentary, unlike
the pastoralists who are mobile. They also graze their animals on communal
grazing land, feed crop residues and also feed more supplements to their cattle
than pastoralists.

Semi- intensive systems

This system is common in peri-urban zones, having farms which are
owned by business men, civil servants and private individuals who employ labour
in the catering of their animals, with milk production as their major objective
(Diop and Mazouz 1995). Dairying is done with some degree of
intensification by a combination of grazing and concentrate-feeding. Here, there
is use of graded cows or crossbreeding, usually between exotic bulls and local
cows or through artificial insemination (AI). The aim of crossbreeding is to
upgrade for better milk production and at the same time retaining the
adaptability of the animals in changing environmental conditions (Bayemi et al
2005). In such farms where management is moderate, it is important for the
animals to have a natural resistance to environmental stress. Milk production
here is much higher than in pastoral systems, though still less than in graded
cows.

Intensive systems

Market infrastructure increases the importance of the dairy
component in smallholder dairying. Increasing population growth and urbanisation
have led to the intensification of dairy systems around urban areas in Africa
which is also favoured by a higher demand in such areas. The farms here are
small (about 1-2 ha with 1-2 cows generally Holstein Friesian or Ayrshire).
Feeding is mainly cut-and-carry with planted Napier grass (Pennisetum
purpureum) and crop residues, especially from maize and bananas. Most work
on the majority of such dairy farms is done by the family. Contrary to pastoral
systems where large proportions and sometimes all the daily milk is consumed at
home, only a small portion of milk produced in this system is left for home
consumption and the rest sold (de Leeuw et al 1998).

Larger intensive farms are usually owned by rich individuals,
cooperatives or the government. More investments are also made on buildings and
machinery while the use of hired labour is unavoidable. These systems
concentrate on the supply of milk in large towns and in most cases have one or
more guaranteed delivery sources. There is a higher market orientation in this
systems and more emphasis is laid on feeding and breeding management to assure
optimal production (Diop et al and Mazouz 1995). In both intensive and
semi-intensive systems AI plays a major role in breeding, as it is cheaper and
less cumbersome than maintaining an exotic bull. Unfortunately, breeding
programmes are poorly structured in some countries, leading to ineffectiveness
in insemination. Farmers usually complain of poor heat detection and low success
rates, leading to long inter calving periods and hence low productivity of
animals.

Milk production status and trends

In the year 2004, total cow milk production in Africa was
21,244,474 tons produced from a total of 46 million dairy cows giving an average
milk yield of 461 Kg milk per cow over the year, which is only one fifth of
world average yield (FAOSTAT 2006).

The top five African milk producing countries in terms of milk
volume are Sudan, Egypt, Kenya, South Africa and Algeria. Meanwhile, the first
four countries alone produce 52% of total African milk (Figure 1).

Source: FAOSTAT 2006, IFCN Sector model 2006

Figure 1. Volume of milk produced and annual growth
percentages

Geographically, the production volume is higher in countries at the Eastern side
of Africa and by those in the North. Though there is a slow overall growth in
milk production in Africa, individual countries have witnessed different growth
and reduction rates. Between the years 1999 and 2004, remarkable increase trends
(>5%/year) were noticed in countries like Egypt, Ethiopia, Uganda and Namibia. A
considerably decreasing trend in milk production (between -5 to - 2.5%/year) was
found in Eritrea, meanwhile Burundi, Congo, Senegal and Zimbabwe noticed smaller
decreases (of -2.5 to -0.5%/year). The other countries either had a small
increase or an almost constant production.

Generally, there has been an increasing trend in milk production
in Africa over the years (Figure 2).

♠ME = Milk Equivalent: Milk equivalents are used to
aggregate supply and demand for milk and milk products in one single figure,
instead of balancing supply and demand for each product like milk fat or milk
protein (IDF 2003). In this study, the combined butterfat and non-fat solids
method was used, which takes into consideration all the solids in milk (IDF
2003).
Source: FAOSTAT, 2006; IFCN Sector Model, 2006

Between the years 1990 and 2004, the demand
for milk and dairy products in Africa was growing at an average rate of 4.0% per
annum; meanwhile production only grew at a rate of 3.1%. Growth in consumption
was pushed both by a growth in population (of 2.8% per annum) and a small growth
in per capita milk consumption (of 0.8% per annum) between 1990 and 2004.

Milk imports have also been increasing within the period of 1990 -
2004 (Figure 2) at a rate of 2.1% per annum, showing that the gab between
production and consumption is also widening up. Meanwhile, milk export, though
very little (consisting of only 1.2% of total production), was increasing
rapidly at the rate of 7.8% per annum during the period of 1990 - 2004 (FAOSTAT
2006; IFCN Sector model 2006). Though this percentage increase in export volume
is almost four times the percentage increase in import, the export increase
seams lower on the figure due to the fact that the initial import value is much
higher (about 30 times more) than exports. Increase in imports has also been
favoured by a reduction of import duties. In Kenya, for example, local dairies
couldn't sometimes buy all milk from local producers because the demand for
their end products was lower, as consumers could get cheaper imports (ILRI
2003a). It is important to note here that, exports and imports here also include
inter continental sales, where Nigeria comes on top of the milk import list.

Processing and consumption patterns for dairy products in Africa

As seen in Figure 3, only about 15% of the total milk produced is
processed to standard products (cheese, yogurt, butter, etc). More than 70% of
total production goes through informal markets or is consumed on the farm.

Figure 3.
Production and consumption of dairy products in Africa from 1990 –
2004

The per capita consumption of milk increased from 35 Kg ME in 1990
to about 40 in 2004 (Figure 3). While the consumption of cheese and dry products
slightly increased, that for butter and condensed milk slightly reduced over the
years. While the production of milk powder is very little, its consumption is
quite high, since this is the most common form of imported milk. Consumption of
milk and milk products in Africa is greatly influenced by traditions and
cultures. The countries with the highest per-capita consumption in Sub- Saharan
Africa are Sudan, Mauritania, Botswana and Kenya (ILRI 2003a).

Dairy development policies in Africa

Dairy trends and production systems can be greatly influenced by
policies. In Kenya, for example, the small-scale specialized dairy production
system has witnessed enormous growth within the past years, due to the vast
adoption of policies favouring this system (Thorpe et al 2000). Several policies
have been suggested for development of the dairy sector of African countries,
with each country laying emphasis on different parts of the dairy chain. Most
policies sprout from a concept that, the dairy sector will realise a great
impact if the production and productivity of milk is increased at national level
to at least maintain self sufficiency, thereby reducing imports.

The major policy areas of intervention on the African dairy sector
include have been discussed below:

Genetic improvement of dairy animals

On a comparative basis, traits like age at first calving, calving
interval, milk yield per lactation, lactation length and fat percentage have
been used to evaluate production in dairy cows. Many studies have shown that
local African breeds are less productive than exotic breeds (Tambi 1991; Mwenya
1993; Bebe et al 2003). Some authors believe that, though local breeds are less
productive, proper breeding schemes and management could greatly increase milk
yields on a more sustainable basis (FAO 1990; FAO 2001; ILRI 2006). Others show
that, the crossing of breeds within African countries could secure better
production and adaptation to local hazards (Jordt et al 1986). A number of
attempts to use exotic breeds in Africa have been successful, leading to a
strong development of interest in policies which favour the introduction of such
breeds. Exotic cow breeds are less adapted to African conditions are hence, more
susceptible to diseases and environmental stress (Ahunu et al 1993; Bebe et al
2003; Bayer and Wanyama 2005). Additional labour and capital input requirements
for exotic breeds are a major constraint to farmers, who in most cases do not
usually have access to credit facilities (Tambi 1991; Per and Marc 2002
Missing). The introduction of exotic breeds to Africa is usually governed by
policies and most countries set control limits for semen or livestock imports
with an aim of preserving local genetic resources (Mwenya 1993). The situation
was worsened from1986, by the outbreak of the mad cow disease, which led to
several laws banning the import of semen, livestock and other cattle products
(Marsh et al 2005), which in some countries have not been completely uplifted
till date. A compromising situation could be reached at by the practice of cross
breeding, whereby, the crosses are believed to be more adaptable to local
conditions than exotic breeds and more productive than local breeds (Ogle 1990).
It would be important also, to study the percentage level of introduction of
exotic genes at which production is most profitable on an economic basis. From
these examples, three policy areas for genetic improvement are highlighted;
those that improve on local breeds by selection and management, those which
promote crossbreeding and those which promote the replacement of local breeds
with exotic ones.

Promotion of the marketing and consumption of milk and dairy
products

Marketing is a very important aspect of the dairy chain. Presence
of close by markets for milk and dairy products is a key motivating factor for
milk producers. The promotion of marketing will require gathering of milk from
several producers, transforming it to an acceptable marketable product and
delivering it to consumers at the desirable time and at an affordable price. Due
to high costs incurred in collection and cooling of milk, it is solicited that
larger volumes are handled to reduce unit costs of transactions. A common means
of doing this is the installation of cooling centres for milk in production
areas and the organisation of farmers into dairy cooperatives (D'Haese et al
2005). It is also important to note that a minimal milk supply level is required
for profitable operation of such units. Encouragement of formal and informal
markets for milk is a common policy area looked upon (D'Haese et al 2005;
Leksmono et al 2006). Marketing policies are most convenient when they go along
with policies that encourage milk consumption, especially in Western and Central
African countries, where the per capita consumption is still very low. In
Uganda, for example the DDA (Dairy Development Authority) promotes milk
consumption using adverts on printed posters, in newspapers and over the radio.
Slogans like "so, have you had milk today?", "got milk"? "How often do you take
a cup of milk?" … are common. Promotion of milk consumption through an adoption
of the School Milk Programme in Southern and Eastern Africa has also led to
great changes in the dairy sector, as it is seen to improve on the livelihoods
of the milk producers and also on the nutritional status of benefiting school
children (Saamanya 2005; Mutagwaba 2005).

Provision of appropriate veterinary and extension services

In order to produce milk, farmers first of all need knowledge
which they can apply to intelligently combine all available resources to produce
milk of acceptable quality, while optimising profit. Due to modernisation,
technology is changing and more efficient methods of combining resources are
evolving. African dairy farmers are in most cases of low educational background
and need to acquire this knowledge through a simple and understandable approach.
Provision of veterinary and extension services to farmers is such an important
policy area in Africa (Tambi 1991; Kyomo 1993; Okwenye 1995 Missing; Urassa and
Raphael 2004). The provision of government incentives on veterinary and
extension services is very important; though the promotion of private services
may also be good, since public services are hardly regular (Swai et al 1993).
The impact of provision of such services could be measured in several ways. In
Kenya, for example, training of farmers led to a reduction of calf mortality
from 20% to less than 10%, within 4 years. The same approach also reduced
mortality rates in Tanzanian cows (FAO 2001).

Provision of credit and farm inputs

The provision of credit to livestock farmers could promote the
adoption of improved livestock technologies especially in rural areas where most
farmers lack tools. However, credit provision to dairy farmers is usually a very
complex issue having difficulties in the decisions on the amount and form of
credit, the interest charged, targeting of specific farmers' groups and specific
activities, and repayment schemes (Ahmed and Ehui 2000; Per and Marc 2002
Missing). Most formal credit institutions are reluctant to provide loans to
dairy farmers because they often don't have good sureties and are susceptible to
epidemics which could lead to inability to pay debts. For easy management and
reduction of transaction costs, credit institutions prefer to loan larger sums
of money to fewer clients than to loan small sums to many dairy farmers.
Therefore specific credit facilities are required for these farmers. The
formation of farmer groups and dairy cooperatives could be helpful in three
ways: firstly a group has better access to formal credits than individual
farmers and secondly, external support or trainings from the public and private
sectors is easier in groups, finally credit schemes could be easily organised
within the group. In some cases, it is possible to give credits in the form of
farm inputs (feed, vet medicine, insemination, farm equipment, etc) and deduct
credit refund directly from milk returns at cooperative level.

Milk import policies

In order to promote the local dairy industry, African policy
makers tend to discourage the importation of milk and dairy products. The import
situation could be worsened in subsequent years as the WTO globalisation
policies are aiming at a reduction in tariff barriers hence, imported milk and
dairy products will become cheaper. According to von Massow (1989), African
governments have the following goals in selecting policies:

Provision of urban consumers with dairy products at affordable
prices; generation of revenues from dairy imports; reduction of the amount of
foreign exchange spent on dairy imports; and stimulation of dairy development,
thereby generating income for producers and moving towards self-sufficiency in
dairy products. At present, Nigeria is the highest importer of milk and dairy
products in Africa (FAOSTAT 2006). This position has been maintained despite
import reduction arising from two ways: first of all, by government regulations
on milk imports through restricted import licensing, prohibition of fresh milk
imports and imposing of specific import duties on dairy products (Ngwoko 1986),
and secondly, after the devaluation of the Nigerian naira (N) in 2001,
leading to a reduction in the purchasing power and subsequently a drop in
importation of milk powder and butter oil (Yahuza 2001). The domestic industry
also faces difficulties like lack of feed, low milk yields, competition from
imports, inefficient extension services, lack of inputs and low milk prices
which discourage local production. From this experience we could conclude that,
restricting imports can only successfully control importation if favourable
policies and suitable resources are allocated to the promotion of domestic
production.

Institutional support to the dairy sector

If policies must be implemented to promote dairy systems then
institutions must be present to determine the most helpful policies and develop
the best strategies for their implementation. In Eastern and Southern Africa,
dairy development is supported by a number of institutes:

The International Livestock Research Institute (ILRI) which has
its head quarters in Nairobi, Kenya and a principal unit in Addis Ababa,
Ethiopia. ILRI principally carries out livestock research as a tool for poverty
alleviation and has recorded success and still plan many projects especially in
the areas of disease control, animal breeding and feeding (ILRI, 2003b, CGIAR,
1997).

National and international dairy boards which intervene
actively in different parts of the dairy chain. For example, the ESADA (East and
South African Dairy Association) is a quite new body which was formed in 2004
for Eastern and Southern African countries. The main aim of ESADA is to increase
the trade in African dairy products and specifically, to actively lobby for an
improved policy environment conducive to regional and international trade. In
addition, she serves as a source of market information and assists her members
in the promotion and marketing of their products within the region and across
the globe (ESADA 2006). Individual countries also have dairy promotion bodies
such as the Kenyan Dairy Board, Dairy Development Authority (DDA, Uganda),
Tanzania Dairy Board and Dairy Development Agency (DDA, Ethiopia). All these
bodies usually work hand in hand with the government and function in promoting
production, marketing and consumption of milk and dairy products and also guide
in the implementation of related policies.

The operation of many NGO's, the active participation of the
private sector in offering services to farmers and the promotion of the
formation of farmer organisations. For example, in Uganda NGO's like Heifer
project International, Land O' Lakes, Send a Cow and Worldwide Sires all
intervene in the dairy sector. The simultaneous involvement of private and
public veterinary and extension services to farmers is worth mentioning.

At this juncture, it is clear that dairy development needs to be
accomplished through policies that can attract various stakeholders to invest in
this sector. The initial step will be seeking the right policies. Nevertheless,
seeking the right policies is not enough for dairy development, but also having
supportive institutions and services for stakeholders. Since African farmers
fall within the class with a relatively lower educational background, these
institutions face a challenge of simplifying knowledge to an acceptable form to
these farmers which would also prevent conflicts with indigenous knowledge and
traditional practices.

Conclusions

Though milk production has been increasing in Africa over the
years, demand has also increased and the gap between these two is widening up.

Due to population growth and increase in per capita consumption, demand for milk
is expected to increase, even more, in the future years. Increasing milk
production to satisfy demand is therefore a challenge to African dairy systems.

The relief of trade barriers through reduction of import duties is a current
strategy under implementation by the WTO which may affect the African dairy
sector. This implies that for local dairy industries to survive, not only
production but productivity also, have to increase, in order to stand
competition from foreign markets.

Some countries have been able to make enormous
increases in production over recent years, showing that there is a potential for
the dairy industry.

However, sector policies, organisational structures and
support services for dairy farmers need to be properly oriented to stimulate
dairy development especially by strengthening the dominant informal sector and
encouraging specialised small and large scale dairy production.

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